Apple’s latest hardware launch may have strengthened Wall Street’s argument that the company is finally entering a broader AI-driven upgrade cycle.
Morgan Stanley analyst Erik Woodring maintained an Overweight rating and $360 price target, according to a market update shared by Walter Bloomberg, arguing that Apple’s newest devices represent a meaningful step higher in innovation.
The standout is the iPhone Duo, Apple’s first foldable iPhone and what Woodring reportedly called the company’s most innovative device in years.
Apple officially introduced the iPhone Duo on Sept. 9 with a 7.6-inch inner display, A20 Pro chip and a redesigned Siri powered by Apple Intelligence.
That gives investors a more concrete answer to a question that has followed Apple for years: can AI actually convince hundreds of millions of iPhone owners to upgrade?
57% of iPhone Users Could Be the Bigger Story
The most important number in Morgan Stanley’s argument may not be the $360 target.
Woodring estimates that 57% of iPhone users are still using devices older than the iPhone 15 Pro, creating a potentially large pool of customers who could be pulled into a replacement cycle by stronger hardware and Apple Intelligence.
That is especially relevant after years when Apple investors questioned whether incremental iPhone updates were enough to drive faster growth.
Rosenblatt raised its AAPL target, while still arguing that Apple needed stronger innovation to justify its premium valuation.
The Duo changes that conversation because it introduces a genuinely different form factor rather than another conventional annual refresh.
Apple Intelligence Finally Has New Hardware to Sell
Apple also gave its AI strategy a more visible hardware foundation.
The new iPhone 18 Pro lineup includes the A20 Pro chip, upgraded on-device AI processing and the new Siri AI experience.
That matters because Apple’s AI problem has never simply been whether it could build software features. Investors have wanted evidence that Apple Intelligence could translate into actual device demand.
The pressure became particularly clear when John Ternus inherited the CEO role. pple’s leadership transition came with a major AI test, as the company faced stronger competition from Google and other AI platforms.
Now Ternus has launched both a foldable iPhone and a deeper AI integration almost immediately after taking over.
The $360 Bull Case Depends on Upgrades
The strongest part of Morgan Stanley’s thesis is therefore not just the Duo itself.
It is the possibility that new hardware, Siri AI and a large aging installed base arrive at the same time.
Apple shares were trading around the high-$310s after the launch, leaving Morgan Stanley’s $360 target implying additional upside if the new devices translate into stronger-than-normal replacement demand.
We have already tracked Apple’s effort to defend growth through premium hardware and higher pricing. The new question is whether Apple can now add a genuine AI upgrade cycle on top of that strategy.
If Woodring is right, the iPhone Duo may matter less for how many foldables Apple sells this year, and more for whether it convinces investors that Apple innovation is accelerating again.
